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FAC512S-FINANCIAL ACCOUNTING 102 -2ND OPP-DEC 2025 |
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nAmlBIA UnlVERSITY
OF SCIEnCE Ano TECH n OLOGY
FACULTY OF COMMERCE, HUMAN SCIENCES AND EDUCATION
DEPARTMENT OF ACCOUNTING, ECONOMICS AND FINANCE
QUALIFICATION: BACHELOR OF ACCOUNTING
QUALIFICATION CODE: 07BGAC
LEVEL: 5
COURSE: FINANCIAL ACCOUNTING 102
COURSE CODE: FAC512S
DATE: NOVEMBER 2025
DURATION: 3 HOURS
SESSION: THEORY AND APPLICATION
MARKS: 100
zNo OPPORTUNITY EXAMINATION
FIRST EXAMINER:
MODERATOR:
Ms. EN Sakeus, Mr. J Angula, Ms. H Kangala
Mr. C Mahindi
INSTRUCTIONS
1. This question paper is made up of FIVE (5) questions.
2. Answer All the questions and in blue or black ink.
3. You are advised to pay due attention to expression and presentation. Failure to do so will
cost you marks.
4. Start each question on a new page in your answer booklet and show all your workings.
5. Questions relating to this paper may be raised in the initial 30 minutes after the start of
the paper. Thereafter, candidates must use their initiative to deal with any perceived error
or ambiguities and any assumption made by the candidate should be clearly stated.
PERMISSIBLE MATERIALS
Non-programmable calculator/financial calculator
THIS QUESTION PAPER CONSISTS OF 6 PAGES (Excluding this front page)
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Question 1
(15 Marks)
Part A
(5 Marks)
ABC Ltd purchased a delivery van for N$200,000. The company expects to use it for 5 years. The
purchase was partly financed by a bank loan of N$120,000. In the same year, ABC Ltd earned
N$S00,000 in sales revenue and paid salaries of N$150,000 to its employees.
Required: Using the definitions of the elements of financial statements, discuss whether the
purchase of the delivery van should be classified as an asset or an expense. Give reasons to
defend your answer.
(5 marks)
Part B
(10 Marks)
Anna and Lydia are two sisters operating similar businesses in neighboring towns near Oshakati,
Namibia.
• Anna has been running a hardware business as a sole trader for the past five years,
without any formal tertiary qualification.
• Lydia, who recently completed her MBA at the University of Stellenbosch, has been
operating a similar store for the past two years.
Lydia has approached Anna with the idea of forming a partnership, believing that running the
two stores jointly could bring several benefits such as trade discounts from bulk purchases and
shared operating costs. During their discussion, Lydia proposed that, since both stores are of
similar size and profitability, profits should be shared equally.
Anna, however, is uncertain about the legal status of a partnership in Namibia and the formalities
involved in setting one up. She therefore seeks advice before making a decision.
Required:
Advise Anna on the advantages and disadvantages of setting up a partnership with Lydia, with
reference to the Namibian business environment.
{10 Marks)
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Question 2
(17 Marks}
The following is a bridged comparative statement of financial position for Bella Rose Ltd on 31
January 2023 and January 2024.
Statement of Financial position as at 31 January 2024
ASSET
2023
N$
2024
N$
Non- Current Assets
46 000
66 000
Current assets
Inventories
Trade and other receivables
Cash and cash equivalents
Total current assets
Total assets
EQUITY AND LIABILITIES
Equity
Capital
Non- current liabilities
Long - term borrowings
Current Liabilities
Trade and other payables
Bank overdraft
Total current liabilities
Total liabilities
Total equity and Liabilities
13 000
17100
30 280
60 380
106 380
44 000
25 080
-
69 080
135 080
71000
77 000
16 000
-
19 380
-
19 380
35 380
106 380
25 080
33 000
58 080
58 080
135 080
Additional Information:
Purchases and sales for the year ended 31 January 2024 were as following:
Cash
Credit
Purchases
N$
28 000
117 000
145 000
Sales
N$
89 000
111000
200 000
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Required:
a. Calculate the following with regards to the year ended 31 January 2024:
i. The gross profit percentage on sales (2023 ratio: 35%).
(4 marks)
ii. The current ratio (2023 ratio: 3,4:1).
(1 .5 marks)
iii. The receivable collection period {2023: 30 days).
(2 marks)
iv. The payable payment period {2023: 30 days).
(2 marks)
v. The acid test ratio (2, 7:1).
(1.5 marks)
NB: The figure in brackets are the corresponding figures for 2023
b. Give Three (3) possible reasons for the fluctuation in the gross profit percentage.
(3 marks)
c. Comment briefly on the liquidity position of the entity.
(3 marks)
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Question 3
(25 Marks)
EMONA Women Club is a club for professional women in different areas of specialization. You
are provided with the following details for the year ended 31 December 2018.
Dr
Subscription for 2018
subscription for 2019
Bar Taking (Sales)
Receipt from fun fair
Bank Account for Year 2018
N$
9 500 Bar Supplier
105 Expenses on fun fair
110 920 wages bar
3 970 General Expenses
Repair & Decoration of Premises
new Furniture bought 30/06/2018
Cr
N$
85 730
3 610
12 340
9 810
7 000
12 500
All bar takings and other receipts were banked instantly.
i. The building belonging to the club was valued at N$75 000 on 1 January 2018
ii. The balance at the bank on 1 January 2018 was N$3 810
iii. The value of Furniture on 1 January 2018 was N$8 000.
iv. Subscriptions paid in advance amount to N$130 were received in 2017.
v. Depreciation on old and new furniture is to be provided at 10% per annum on cost.
The following details are also available:
31/12/2017
31/12/2018
N$
N$
Bar stock
4 305
4 640
Credit to bar supplier
6 205
6 330
Subscription Owings
180
90
You are required to prepare:
a) The income and expenditure account for the year ended 31 December 2018.
(15 marks)
b) The statement of financial position as at 31 December 2018.
(10 marks)
NB: show your workings:
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Question 4
(13 marks)
Home Appliance Traders (Pty) Ltd supplies spare parts and accessories for household
refrigerators and microwaves. At 31 December 2023, the following items were on hand:
Item
Units on
hand
Cost per Net realisable value
unit (N$}
per unit (N$)
Refrigerator motors
300
120
135
Microwave glass doors
1200
75
70
Refrigerator shelves
950
95
100
Microwave control
500
200
210
panels
Additional information:
1. To stay competitive, management has decided to reduce the selling price of all items by
10% with effect from 1 January 2024. The net realisable values above do not reflect this
adjustment.
2. All items are ready for sale.
3. On 30 December 2023, Home Appliance Traders secured a bulk order from a hotel for 150
microwave control panels at a price of N$260 per unit. However, the panels must be
shipped in protective anti-static bags costing N$15 per unit, and distribution costs will
amount to N$12 per unit.
4. On 2 January 2024, an electrical fire broke out in the company's storeroom, destroying
15% of refrigerator motors. Of the damaged motors, 60% had been on hand at year-end
and 40% were purchased on 1 January 2024.
Required:
a) Calculate the value of the closing inventory that should appear in the statement of
financial position as at 31 December 2023, being Home Appliance Traders (Pty) Ltd's
financial year-end .
(11 Marks)
b) Explain the difference between the cost of inventory and the Net realizable value.
(2 Marks)
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Question 5
(30 Marks)
Sarie, Silvia and Sonja decided to form a close corporation, RieViaJa CC, to which each will
contribute N$30 000 in cash . As Sonja will be responsible for the daily management of the close
corporation, she will hold half of the members ' interest, and another half will be held equally by
Sarie and Silvia.
Silvia, as an attorney, will be responsible for the formation of the close corporation and will
ensure that the legal requirements are met. The value of her services is estimated at N$10 000
and must be recognized as an additional member's contribution. Sarie has decided to make an
additional member's contribution in the form of a motor vehicle worth N$15 000.
The formati?n and registration were completed on 15 March 2023. The profit before tax for the
period ending 30 September 2023 was N$60 000, after the following have been considered:
Salaries: Sarie
Silvia
Sonja
Rent Paid to Sarie in respect of a truck rented from her
Petrol expenses in respect of the above-mentioned truck
Bonuses: Sarie
Silvia
Sonja
Rent Paid to Sonja in respect of office rent
Distribution (equally between the three members
N$
5 000
5 000
7 500
500
1000
1000
1000
1000
2 000
15 000
• Assume that the profit before tax is calculated correctly and that the tax expenses for the
year are N$37 500.
You are required:
a) Prepare the statement of income for the period ending 30 September 2023, in which the
transactions with members are set out.
(8 marks)
b) Disclose the member's interest section of the statement of financial position on 30
September 2023.
(6 marks)
c) The statement of changes in the net Investment of members for the period ended 30
September 2023.
(11 marks)
d) Why must member-related transactions (such as salaries, rent, and distributions)
be clearly disclosed in the financial statements of a Close Corporation? (5 marks)
END
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